Also, why the Disk Tools floppy?  Not that that is your problem now, but why not a fresh install of a full system? 

NB that when you're installing a system from another machine, you need to choose the option in the installer to "Install software for any mac"

It's also important that your CF card can do UDMA - ie, can act as a hard drive to the system.  The card manufacturer's specs should tell you.